Some 80 percent of companies said they are hesitant about adopting a new group taxation system to be introduced in fiscal 2002, due to a 2 percent surtax on profits that could result in higher taxes overall, according to a recent poll conducted by Daiwa Institute of Research.

The research arm of the Daiwa Securities group surveyed 94 listed companies.

Of the respondents, only two companies said they will adopt the new tax system and 16 firms said they are "highly likely" to do so.